We exploit random variation in the meeting frequency of microfinance groups during their first loan cycle to show that more frequent meeting is associated with long-run increases in social interaction and lower default. Relative to clients who met on a monthly based during their first loan, those who met weekly are three and a half times less likely to default on their subsequent loan.

“Never put too much weight on a single study…Strive to understanding the details of the study before counting it as evidence…If a study’s assumptions, extrapolations and calculations are too complex to be easily understood, this is a strike against the study…context is key”